Circular Letter No. 13 (2010)
September 15 , 2010
|TO:||All Property/Casualty Insurance Companies and Reciprocal Insurers Authorized to Write Workers’ Compensation Insurance|
|RE:||Workers’ Compensation Security Fund|
STATUTORY REFERENCES: Sections 108 and 109 of the Workers’ Compensation Law
Please be advised that determinations made in accordance with the requirements of Workers’ Compensation Law § 109 indicate that the amount of assets in the Workers’ Compensation Security Fund as of June 30, 2010 exceeds $74 million dollars. Section 109 provides that when the amount of assets of the Fund equals or exceeds $74 million dollars, no further contributions shall be required.
Workers’ Compensation Law § 108 provides that for the privilege of carrying on the business of workers’ compensation insurance in this state, every carrier (as defined in Workers’ Compensation Law § 106) shall pay into the Fund, on a quarterly basis, a sum equal to not more than two percent of its net written premiums, less the amount of dividends paid to policyholders, as shown on the quarterly return form required to be filed by Workers’ Compensation Law § 108.
Workers’ Compensation Law § 109(1) provides that when the Superintendent determines, as of the end of any quarterly period, the amount of assets in the Workers’ Compensation Security Fund equals or exceeds $74 million dollars, no further payment under Workers’ Compensation Law § 108 shall be required to be made after that quarterly period. However, whenever as of any subsequent quarterly period the amount of such assets is less than $74 million dollars, contributions shall be resumed at the beginning of the next quarter.
The first quarterly contribution to be suspended will be the contribution due on or before May 15, 2011 for the quarter ending March 31, 2011. Accordingly, every carrier must cease collecting the surcharge from its insureds for policies issued or renewed with effective dates January 1, 2011 or later. Any carrier that has collected surcharges in excess of payments made pursuant to Workers’ Compensation Law § 108 must, in accordance with that section, remit the excess to the Superintendent within 120 days after January 1, 2011.
In addition, unless an insurer is required to remit any payments made in excess of surcharges, no quarterly returns will be required to be filed until contributions are resumed.
Please acknowledge receipt of this letter and refer any questions to:
Mark E. Daigneault
Director of Taxes and Accounts
New York State Insurance Department
One Commerce Plaza
Albany, New York 12257
Very truly yours,
Karen E. Cole
Director of Administration and Operations